A royal castle, prestigious schools, a 3,500 hectare forest, a connection to the capital in half an hour by RER… About twenty kilometers west of Paris, Saint-Germain-en-Laye (Yvelines ) is one of the most attractive cities in the outer suburbs. And also one of the most expensive for real estate, with a square meter at 7,992 euros on average, according to MeilleursAgents.
However, the situation varies greatly depending on the neighborhood. “The majority of acquisitions are concentrated in the center, where properties cost on average around 8,500 euros per square meter”, notes Stephen Le Balch, director of the city’s Stéphane Plaza real estate agency. “But in Bel-Air, a district to the west of the town, real estate consists mainly of large complexes built in the 1970s and prices are around 3,500 euros per square meter”, he specifies. Near the international high school, further west, prices are closer to 5,500 euros or 6,500 euros. The district is sought after by foreigners, and by expatriates returning to France due to Brexit.
However, the area most popular with newcomers and investors remains the Alsace-Péreire district, near the train station and the centre. “Apartments and houses here sell for between 7,500 euros and 9,500 euros per square meter. Since the end of the first confinement, prices there have increased by 15% to 20%”, says Matthieu Helix, director of Helix Immobilier. “But the goods recording strong increases are those which have an exterior, the others see their price stagnate”, he observes.
The houses, especially
The rental market is also dynamic. “Many families arrive, from abroad or from France, with a parent appointed to head a large French group. They are ready to rent a large property 5,000 to 10,000 euros per month, says Mr. Helix. Students are interested in Sciences Po Saint-Germain-en-Laye. But studio rents are high, with 30 square meters sometimes rented for 900 euros per month. »
For new buyers, prices in the most popular neighborhoods are now too high for rental profitability to really be there. For a T2 rented at 19.20 euros per square meter (the average rent here, all properties combined), the profitability generated, at the purchase price of the current square meter, will be 3% gross.
Despite this, small areas remain popular with investors, who are more looking for a safe investment, or even a capital gain on resale, than a high rental return. It must be said that in five years property prices in the city have increased by 18.5% for all properties, according to MeilleursAgents. These are the houses that show the strongest increases: their prices have gained more than 30%, on average, according to data from notaries.
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